CONSUMER TREND CANVAS. Understand and apply any consumer trend. Today.
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1 CONSUMER TREND CANVAS Understand and apply any consumer trend. Today.
2 CONSUMER TREND CANVAS An easy-to-follow framework that will help you not only unpack and understand any consumer trend, but also help you apply it to launch successful consumer-facing innovations of your own. Consumer trends are, at their heart, an essential part of uncovering innovation opportunities. Otherwise they re just intellectual masturbation: diverting, pleasant and entertaining, but with little real purpose ;) Yet we frequently hear that trends feel mysterious and opaque. Which is where the CONSUMER TREND CANVAS * comes in. * Generously inspired by Alex Osterwalder s Business Model Canvas ;) CONSUMER TREND CANVAS 2
3
4 1. Print the blank canvas on the previous page - Print it out, as big as you can! Try using it to structure an innovation session with your team or a client. How and when to use the canvas. 2. Take a trend - Either from us or elsewhere. 3. Start with the left hand side: Analyze - Add supporting insights, data and examples. Keep circling back to re-examine how the segments relate to each other. Insights in one segment may highlight other elements of the trend and help you uncover truly novel concepts. 4. Then turn to the right hand side: Apply - To identify how, where and for which consumers you could apply the trend. 5. Finally capture your new innovation idea! - Congratulations! Your new idea will be deeply grounded in what consumers want, and therefore more likely to be successful! CONSUMER TREND CANVAS 4
5 1. ANALYZE The left hand side of the CONSUMER TREND CANVAS will help you unpack and understand the trend you are examining. 1. ANALYZE 2. APPL Y Basic Needs Drivers of Change Innovation Potential Emerging Consumer Expectations Inspiration Who YOUR INNOVATION CONSUMER TREND CANVAS 5
6 ANALYZE Basic Needs What deep consumer needs & desires does this trend address? Consumer trends and consumer behaviors more broadly are ultimately driven by basic, fundamental, rarely-if-ever-changing human needs and desires. Identifying these underlying needs is central to understanding any consumer trend. Where to start? How about these: Social status Social interaction Self-improvement Creativity Entertainment Fairness Excitement Honesty Basic Needs 1. ANALYZE Drivers of Change Connection Freedom Security Recognition Identity Simplicity Emerging Consumer Expectations Relevance Transparency Inspiration CONSUMER TREND CANVAS 6
7 ANALYZE Drivers of Change Why is this trend emerging now? What s changing? Basic Needs Emerging Consumer Expectations 1. ANALYZ E Drivers of Change Inspiration There are no consumer trends without change. Savvy business professionals constantly look for shifts that make it possible to service consumers basic needs and wants in novel, exciting better ways. To analyze change, think Shifts and Triggers: Shifts are the long-term, macro changes that are playing out across years or even decades, that while not consumer trends themselves, will shape both the direction and flavor of a specific trend. For a good summary of the macro shifts currently shaping the world, see Euromonitor s 10 Global Macro Trends for the Next Five Years (such as urban transition, ageing world and climate challenge). Triggers are the more immediate changes that drive the emergence of a consumer trend. These can include specific technologies, political events, economic shocks, environmental incidents, and more. For example, developments in visual search technologies are driving the POINT-KNOW-BUY trend. Look at the data behind the trend. Rapid growth or sudden shifts, even if the absolute numbers might be small, are worth attention. Think sales volumes, consumer behaviors or attitudes, social media chatter, etc. TIP: Strategic frameworks can be useful tools to analyze external change. Check out the PESTLE model (Political, Economic, Social, Technological, Legal and Environmental) and its various adaptations. CONSUMER TREND CANVAS 7
8 ANALYZE Emerging Consumer Expectations What new consumer needs, wants and expectations are created by the changes identified above? Where and how does this trend satisfy them? Consumer trends emerge when basic human needs bump up against external change to create (or unlock) new needs, wants and desires. And identifying these unmet needs and wants is the holy grail of understanding trends, as it will present you with compelling innovation opportunities. To identify emerging needs, wants and desires, look for expectation gaps between what consumers want, and what they currently have. transparent, honest CLEAN SLATE BRANDS. Another example: in the music industry, digital technologies triggered consumers to expect infinite choice and instant access to music, on their terms. The ACCESSHIP trend exemplified by services such as Spotify was a natural response. Try asking yourself, What do the consumers embracing the brands, products and services that embody For example, the epic social shift this trend now want and even Basic Needs 1. ANALYZ E Drivers of Change away from strict formality has led to people embracing more human and expect? One tip: pay careful attention to other irreverent brands such as Zappos, industries. Consumers don t think in Emerging Consumer Expectations Inspiration Ben & Jerry s and a whole host of others. Disillusionment with the big industry silos. New expectations of quality or service will usually be set and dirty corporate world continues outside your industry, but they won t to stoke consumer enthusiasm for remain there for long. CONSUMER TREND CANVAS 8
9 ANALYZE Inspiration How are other businesses applying this trend? Regular readers will know that we always turn to real-world examples to illustrate trends. Why? Because actually seeing what other businesses, entrepreneurs, non-profits, governments even, are already doing with the trend is a great way to better understand it (and gain inspiration ;). So try this: look at existing business innovations, understand* them, then adapt them to your business. To gain as wide a perspective as possible, look specifically at other industries, other regions or cultures, or other types of business (e.g. corporate versus start-ups). 1. ANALYZE Indeed, very few innovations are totally new. Most (successful) innovation comes from combining Basic Needs Drivers of Change seemingly unrelated elements, or taking something and deploying it in a new context. Emerging Consumer Expectations Inspiration * Understand from the point of view of those people living this trend, which of course may not necessarily align with your own personal likes and aspirations. CONSUMER TREND CANVAS 9
10 Trend Report We obviously offer much more than monthly Trend Briefings... 2 Trend Framework 3 Innovation Database Our Premium Service Your complete trend and innovation solution. 4 Industry Updates 5 Apply Toolkit Find out more 6 Monthly Updates 7 1-page Trend Handouts
11 2. APPLY The right hand side of the CONSUMER TREND CANVAS is all about identifying what opportunities this trend can present for your business. 1. ANALYZE 2. APPLY Basic Needs Drivers of Change Innovation Potential Emerging Consumer Expectations Inspiration Who YOUR INNOVATION CONSUMER TREND CANVAS 11
12 APPLY Innovation Potential How and where could you apply this trend to your business? 2. APPLY Innovation Potential YOUR INNOVATION Who When thinking about a consumer trend, it helps to consider how and where it could impact your business using these four areas: Vision: How will the deeper shifts underlying this trend shape your company s long-term vision? Business Model: Can you apply this trend to launch a whole new business venture or brand? Product / Service / Experience: What new products and services could you create in light of this trend? How will you adapt your current products and services? Campaign: How can you incorporate this trend into your campaigns, and show consumers you speak their language, that you get it. So, consumer trends can trigger both BIG and small innovations. If you re the CEO, you re probably more interested in whether the consumer trend you re analyzing is going to lead to deep, brandshattering (or -building!) disruption. If you re a brand manager, you ll be thinking more about how to use the trend to inform and improve your marketing campaigns. Not all trends will apply equally to all businesses or regions. How and where you apply the trend will depend on your business. A luxury brand may actively choose to ignore the DEALER-CHIC trend. In Asia, where admitting error means a loss of face, the FLAWSOME trend is less relevant. For now. CONSUMER TREND CANVAS 12
13 APPLY Who Which (new) customer groups could you apply this trend to? What would you have to change? 2. APPLY Innovation Potential Say trends and many people instantly think of demographics. And of course, consumers that share certain traits (whether in age, income, lifestyle, tribe, location etc.) will often have similar tastes and preferences. But when it comes to applying consumer trends, try thinking beyond those who are currently living the trend. Indeed, thinking about what changes you would have to make, to make this trend relevant for other (new) demographics is a great way to come up with new innovations. Need further inspiration? Then look to the margins and at what extreme users are currently doing. New consumer behaviors usually start with certain (niche) segments, before evolving and spreading throughout the mass market. Who YOUR INNOVATION CONSUMER TREND CANVAS 13
14 CONSUMER TREND CANVAS 14
15 GUILT-FREE CONSUMPTION WORKED EXAMPLE Check out this worked example, showing how the GUILT-FREE CONSUMPTION trend can be analyzed and applied using the Consumer Trend Canvas: CONSUMER TREND CANVAS 15
16 WORKED EXAMPLE - GUILT-FREE CONSUMPTION GUILT-FREE CONSUMPTION: Fueled by a pervasive awareness of the conflicts between their consumerist impulses and their aspirations to be good, experienced consumers are increasingly wracked with guilt. The result? A growing hunger for a new kind of consumption: one that still offers genuine pleasure without damaging oneself, society or the planet. CONSUMER TREND CANVAS 16
17 WORKED EXAMPLE - GUILT-FREE CONSUMPTION Basic Needs One of the Big Human Needs is to consider oneself good. People feel good about themselves when they live according to their deeply held values and aspirations, and contribute to a better world. CONSUMER TREND CANVAS 17
18 WORKED EXAMPLE - GUILT-FREE CONSUMPTION Drivers of Change Shifts: The online world has created a better informed consumer class (about society, the environment and personal health). Plus, abundance and mass consumption has made consumers seek meaningful brands. Triggers: A combination of repeated tragic incidents (from factory collapses to supply chain exposés) and the proliferation of CLEAN SLATE alternatives mean consumers are evermore frequently reminded of their guilt. CONSUMER TREND CANVAS 18
19 WORKED EXAMPLE - GUILT-FREE CONSUMPTION Emerging Consumer Expectations Consumers are now hungry for a new kind of consumption, one that will allow them to continue to enjoy consumption, yet not worry (or at least worry less) about its negative impact. Brands are expected to minimize environmental damage (as much as possible), give back to society, and to empower consumers to better themselves. CONSUMER TREND CANVAS 19
20 WORKED EXAMPLE - GUILT-FREE CONSUMPTION Inspiration Peddler s Creamery: customer-pedaled bicycle churner. Fairphone: manufactured without conflict minerals. Patagonia s Responsible Economy research effort. Burger King s Satisfries French fries with 40% less fat and 30% fewer calories. Tesla Model S strong commercial success in California & Europe. CONSUMER TREND CANVAS 20
21 WORKED EXAMPLE - GUILT-FREE CONSUMPTION Innovation Potential Vision: Is your company minimizing negative impacts and even contributing positively? Business Model: Think cradle-to-cradle and other forms of collaborative consumption. Product/ Service: Remove personal, social and environmental guilt from your manufacturing, distribution and consumption processes. Marketing/ Campaigns: Taking steps toward offering GFC? Then celebrate that! CONSUMER TREND CANVAS 21
22 WORKED EXAMPLE - GUILT-FREE CONSUMPTION Who Educated, informed, urban and demanding consumer groups are currently most vocal in their GFC demands. But other consumer groups, from striving parents to legacy-eyeing boomers, are also afflicted by potent guilt. Absolve them! CONSUMER TREND CANVAS 22
23 NEXT CONSUMER TREND CANVAS 23
24 NEXT Use it! The CONSUMER TREND CANVAS is just a tool. It s only as useful as you make it. Download a printable blank canvas, grab a trend, and start filling it in. Or even better, schedule a session with your team or a client and see what you come up with. CONSUMER TREND CANVAS 24
25 NEXT Have some fun! Trend watching is about coming up with (and launching) exciting new products and services for your customers, nothing more and nothing less. It shouldn t be scary, or boring (if it is, you re doing it wrong. ;) CONSUMER TREND CANVAS 25
26 NEXT Get going! Billions of consumers crave brands, products and services that make life more exciting, more efficient, more sustainable, and simply better than it currently is. And there is also a relentless, global horde of smart brands and entrepreneurs striving to meet these cravings. Will it be you that delivers, or someone else? CONSUMER TREND CANVAS 26
27 Our Apply Workshops Want to turn trends into innovations? Find out more
28 NOW... MORE... Enjoyed this Trend Briefing? Want more? 1. Our free monthly Trend Briefings 2. Our 2014 Premium Service Join the 250,000 subscribers who receive our free monthly Trend Briefings. Should you be one of our 1,200+ Premium clients? SUBSCRIBE ME» If you have any comments, suggestions or questions then please do let us know. Just PAUL BACKMAN Chief Client Officer About us Established in 2002, trendwatching.com is the world s leading trend firm, scanning the globe for the most promising consumer trends, insights and related hands-on business ideas. Our Premium Service counts many of the world s leading brands as clients, while our free monthly Trend Briefings go out to over 250,000 subscribers in 180 countries. More at
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